Thereis no clear definition of human resource strategy, as differentscholars tend to give different definition and opinions over theconcept. To understand the development of human resource strategy, itis important to echo on major question like where the organizationwants to be in future. How to get there, where the organization iscurrently? The kind of people the organization need to get where itwants to be, and finally the kind of initiative programs that need tobe implemented in order to attract and retain employees to competeeffectively[ CITATION Deb06 l 1033 ].If we define human resource strategy from the perspective of theabove questions, then human resource strategy can be defined as asynchronized set of events, preordained at amalgamating theorganization’s culture, systems, organization, and people toachieve the goals and objectives of the organization. The descriptivepapers studies two companies from different industries in attempt tounderstand the concept of human resource strategy. The paper furthercompares and contrast the companies identified in terms of services,economic, customers, size and regulatory environments. In addition,the paper describes the core business practices, vision, values, andmission of the selected companies in order to understand thedevelopment of the concept of human resource strategy.
Fromthe fortune 100 list, a website that provides the best places towork, the paper uses Scottrade Company, from financial servicesindustry and Old Dominion Freight Line, from transportation industryas example companies to understand the concept of human resourcestrategy. Scottrade is brokerage firm that offers services likebanking, brokerage, and investment of various types. The companyoffers both branch and online services for its customers[ CITATION InH06 l 1033 ].The company’s mission is to aid associatesrealize success both in professional and personal lives viatrainings, development opportunities and technology. The vision ofScottrade is to focus on continuous innovation, growth, andleadership diversity. Then the mission and vision of the companyintegrates the values and business practices of teamwork, opencommunication, customer services, individual development, trust, andintegrity.
Thevision for old dominion freight Line Company is to be thetransportation solution company in both domestic and global markets.The mission is to provide innovative solutions designed to exceedcustomer expectations, increase shareholders value, and ensure thecontinued success of the company and the families of the employees.The company values best deliveries, reliability, consistency, andsafety in its deliveries. The key characteristics of the company, isstrive to offer transportation solutions worldwide and the majorcompetitive advantage is the company’s ability to maintain itsdelivery process. The key process to achieve the mission, vision, andvalues of the company is through employing competitive employees suchas skilled drivers and pilots to mention.
Comparisonof the industries
Interms of size both companies operates in domestic and regional levelsand indication that they are both big companies. For instance,Scottrade has more than 500 branches and it serves people of theUnited States of America and people from other regions like the Asianpeople[ CITATION Bus06 l 1033 ].Similar toScottrade, old dominion freight line offers transportation servicesacross the world. In terms of economic environment, both companiesstrive to improve the economic conditions of the world throughprovision of job opportunities. They both tend to offer best servicesto maintain and develop the performance of their companies. Bothcompanies have regulations to ensure that all the actions arechanneled towards achieving the mission, vision, and values of theirrespective industries.
Thetwo industries vary in terms of the services they offer. ScottradeCompany offers banking and investment services that are in line withfinancial services while old dominion freight line company offerstransportation services like that of people, and delivery of luggageof various types. Another contrast is that, Scottrade Company offersemployment opportunities for accountants, actuaries, and financialspecialist people to mention while old dominion freight line offersemployment opportunities for transportation related jobs like driverspilots to mention in terms of economic environment.
Thestudy identified commitment as a human resource strategy. Thecommitment strategy comprises the actions of human resourcemanagement employing skilled workers for the organization to realizeits mission and vision. Skills and knowledge of a given job is thebest tool to giving the best towards that job description. The studyidentified that Scottrade employed highly skilled financialspecialist to ensure best financial service in attempt to attain themission, vision, and values of the company. On the other hand, olddominion Freight Company employed skilled transportation specialistto achieve transportation solution that is the mission of thecompany. Finally, the strategy broadly defines the job tasks andencourages high participation levels of employees. The commitmentstrategy creates room for workers to be innovative to come up withnew ideas. For instance, the current education investment productsrendered by scottrade are a result of innovation. Initially peoplerarely invested in education but due to innovation that tries tospread the important information of the need to cater for oneseducation, the human resource strategy creates room for effectiveperformance for industries in attempt to achieve their vision andmission. Another strategy is that of performance. The studyidentified that both companies employed the strategy of performancein acquiring the workers[ CITATION Coo02 l 1033 ].Employees employed by both companies had the abilities andcompetencies in their job descriptions. The strategy is important asall the workers strive to meet the goals and objectives of thecompany. For instance, the employees of old dominion freight LineCompany strive to ensure that they deliver their service on time toachieve the mission of the company, which is to providetransportation solution globally.
ForScottrade Company to improve its performance I suggest that thecompany employ a motivation strategy in the sector of human resource.Motivation strategy can be promoting employees to higher levels whenthey perform better. The strategy enables the employees to feelrecognized and appreciated and in return, they will improve theirperformance in attempt to achieve the goals and objectives of thecompany. The company may as well employ the strategy of high benefitsand wages to maintain and improve high quality services by theemployees. For Old Dominion Freight Company to promote itscompetitive advantage, the company needs to employ the extensivetraining strategy to create a basis for continuous training. Thestrategy will equip the workers with new skills as technology keepschanging. Another strategy that the company needs to employ is thatof control to cut down the costs to maximize the profits. OldDominion Freight Line Company requires less marketing unlikeScottrade Company that requires a lot of marketing. Alternatively,the company needs skilled drivers and pilots hence need to employthose two strategies for the company to achieve its vision andmission.
Cooke,W. N. (2002). Multinationalcompanies and global human resource strategies.Westport, Conn: Quorum Books.
Deb,T. (2006). Strategicapproach to human resource management: Concept, tools andapplication.New Delhi: Atlantic.
Businessliteracy for HR professionals: Essentials of strategy.(2006). Boston. Massachusetts: Harvard Business School Press.
InHeneman, R. L., & In Tansky, J. W. (2006). Humanresource strategies for the high growth entrepreneurial firm.Greenwich: Information Age Publishing.